ANSYS INC (ANSS)
US03662Q1058 - Common Stock
ANSS gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 276 industry peers in the Software industry. ANSS gets an excellent profitability rating and is at the same time showing great financial health properties. ANSS has a correct valuation and a medium growth rate. This makes ANSS very considerable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year ANSS was profitable.
ANSS had a positive operating cash flow in the past year.
ANSS had positive earnings in each of the past 5 years.
In the past 5 years ANSS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 6.83%, ANSS belongs to the top of the industry, outperforming 86.13% of the companies in the same industry.
ANSS's Return On Equity of 9.28% is amongst the best of the industry. ANSS outperforms 83.21% of its industry peers.
The Return On Invested Capital of ANSS (8.59%) is better than 87.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ANSS is in line with the industry average of 10.12%.
The last Return On Invested Capital (8.59%) for ANSS is above the 3 year average (8.54%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 9.28% | ||
| ROIC | 8.59% |
ROA(3y)7.28%
ROA(5y)7.7%
ROE(3y)10.06%
ROE(5y)10.77%
ROIC(3y)8.54%
ROIC(5y)8.98%
1.3 Margins
The Profit Margin of ANSS (22.04%) is better than 91.61% of its industry peers.
In the last couple of years the Profit Margin of ANSS has declined.
ANSS has a Operating Margin of 27.74%. This is amongst the best in the industry. ANSS outperforms 95.26% of its industry peers.
ANSS's Operating Margin has declined in the last couple of years.
ANSS has a better Gross Margin (88.05%) than 94.53% of its industry peers.
In the last couple of years the Gross Margin of ANSS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.74% | ||
| PM (TTM) | 22.04% | ||
| GM | 88.05% |
OM growth 3Y-1.75%
OM growth 5Y-5.34%
PM growth 3Y-5.12%
PM growth 5Y-7.42%
GM growth 3Y0.55%
GM growth 5Y0.02%
2. Health
2.1 Basic Checks
ANSS has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ANSS remains at a similar level compared to 1 year ago.
Compared to 5 years ago, ANSS has more shares outstanding
The debt/assets ratio for ANSS has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 10.60 indicates that ANSS is not in any danger for bankruptcy at the moment.
ANSS's Altman-Z score of 10.60 is amongst the best of the industry. ANSS outperforms 89.42% of its industry peers.
The Debt to FCF ratio of ANSS is 1.09, which is an excellent value as it means it would take ANSS, only 1.09 years of fcf income to pay off all of its debts.
ANSS has a Debt to FCF ratio of 1.09. This is in the better half of the industry: ANSS outperforms 75.18% of its industry peers.
A Debt/Equity ratio of 0.14 indicates that ANSS is not too dependend on debt financing.
ANSS has a Debt to Equity ratio of 0.14. This is comparable to the rest of the industry: ANSS outperforms 51.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | 1.09 | ||
| Altman-Z | 10.6 |
ROIC/WACC0.86
WACC9.94%
2.3 Liquidity
A Current Ratio of 2.30 indicates that ANSS has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.30, ANSS is in the better half of the industry, outperforming 67.88% of the companies in the same industry.
A Quick Ratio of 2.30 indicates that ANSS has no problem at all paying its short term obligations.
ANSS's Quick ratio of 2.30 is fine compared to the rest of the industry. ANSS outperforms 68.61% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.3 | ||
| Quick Ratio | 2.3 |
3. Growth
3.1 Past
ANSS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.14%, which is quite good.
ANSS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 8.00% yearly.
Looking at the last year, ANSS shows a quite strong growth in Revenue. The Revenue has grown by 9.89% in the last year.
Measured over the past years, ANSS shows a quite strong growth in Revenue. The Revenue has been growing by 11.90% on average per year.
EPS 1Y (TTM)10.14%
EPS 3Y9.51%
EPS 5Y8%
EPS growth Q2Q27.51%
Revenue 1Y (TTM)9.89%
Revenue growth 3Y10.52%
Revenue growth 5Y11.9%
Revenue growth Q2Q15.99%
3.2 Future
ANSS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.51% yearly.
The Revenue is expected to grow by 9.45% on average over the next years. This is quite good.
EPS Next Y12.79%
EPS Next 2Y11.68%
EPS Next 3Y12.73%
EPS Next 5Y13.51%
Revenue Next Year10.24%
Revenue Next 2Y9.86%
Revenue Next 3Y9.6%
Revenue Next 5Y9.45%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 37.04, ANSS can be considered very expensive at the moment.
Based on the Price/Earnings ratio, ANSS is valued a bit cheaper than 69.34% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.20, ANSS is valued a bit more expensive.
ANSS is valuated quite expensively with a Price/Forward Earnings ratio of 32.84.
Based on the Price/Forward Earnings ratio, ANSS is valued a bit cheaper than 67.15% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. ANSS is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 32.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ANSS is valued a bit cheaper than 75.55% of the companies in the same industry.
ANSS's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. ANSS is cheaper than 65.69% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.13 | ||
| EV/EBITDA | 37.06 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
ANSS has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as ANSS's earnings are expected to grow with 12.73% in the coming years.
PEG (NY)2.9
PEG (5Y)4.63
EPS Next 2Y11.68%
EPS Next 3Y12.73%
5. Dividend
5.1 Amount
No dividends for ANSS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ANSYS INC
NASDAQ:ANSS (4/23/2024, 7:00:00 PM)
After market: 326.11 +0.14 (+0.04%)325.97
+1.16 (+0.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap28.46B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.04 | ||
| Fwd PE | 32.84 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.9
PEG (5Y)4.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.83% | ||
| ROE | 9.28% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 27.74% | ||
| PM (TTM) | 22.04% | ||
| GM | 88.05% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.14 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.3 | ||
| Quick Ratio | 2.3 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)10.14%
EPS 3Y9.51%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.79%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)9.89%
Revenue growth 3Y10.52%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y